Heartwood Lumber Sales supplies rustic touches

Heading south on Highway 65 toward Branson, it's hard to miss the towering three-story log cabin that belongs to Ozark-based Heartwood Lumber Sales.

But the cabin, built in 2001 as a marketing tool for the company's white pine products, created the common misperception that the company actually builds log cabins.

"We've worked really hard to get that out of people's minds," said Heartwood General Manager Ryan Baker.

Heartwood, founded in 1995 by Joe and June Somers, supplies white pine exterior log siding, flooring, custom-cut timbers and beams, tongue-and-groove paneling and other products to builders, including do-it-yourselfers who want to add rustic touches to their projects.

Misconceptions about the business, however, are just one obstacle Heartwood Lumber has faced in recent months. Like the construction industry as a whole, Heartwood has had to work to maintain profitability during the recession. The company posted revenues of $1.5 million in 2009, a 16 percent drop from 2008, but Baker said the company weathered the economy by listening to custom home builders and watching indicators before the market turned.

"We cut back on overhead, eliminating debt and spending unless it was 100 percent necessary," he said. "We've not updated equipment we normally would have (and have been) a little softer on it and focused more on maintenance."

Cuts in advertising spending and smaller booth space at several regional annual events, such as the Home Builders Association of Greater Springfield's Home Show, brought additional annual savings of $5,000, Baker said.

He noted that although the company doesn't want to lay anyone off, it did lose one employee to attrition last year and let a temporary worker go.

"We have a real good core group of people now and we would rather sacrifice something else," said Baker of Heartwood's eight-person staff.

Broad business reach

Another key driver of the company's 2009 revenues was a broader reach, going farther north to South Dakota and farther west to Colorado, with a focus on commercial sales.

Commercial sales aren't new to Heartwood, as the company has been a supplier for Bass Pro Shops' stores. Early last year, the company started targeting commercial builders and architects via direct mail in several states, including Nebraska and South Dakota, and Baker said that effort accounted for roughly $115,000 in 2009 sales. The company's commercial business grew by 18 percent in 2009, and 40 percent of its business is outside a 40-mile radius of Ozark, compared to 25 percent in 2008, he added. Heartwood sells 65 percent of its products to builders, 25 percent to individual homeowners and 10 percent to distributors.Nick Jaberian is among Heartwood's customers outside that 40-mile radius.

"We bought some of the lumber products we are using in our banquet hall that is still under construction," said Jaberian, owner of the Red Fox Winery and Vineyard in Urich, roughly 106 miles from Springfield. "(The company) had that rustic look and selection we were looking for."

From barbecue to white pine

When Joe Somers bought the land on the east side of Highway 65, he intended on converting a barn on the site into a barbecue restaurant.

"He was a northeastern native and had been in the log industry, so he decided to side the barn with log siding and give it the right theme for the area," Baker said. "People saw the transformation and kept coming in asking him about log homes."

That's when Somers decided to open an eastern white pine lumber business instead. He ran the company until his death in 2007, when June became sole owner.

GM Baker said that although eastern white pine isn't a local product, it fits the rustic look people in the Ozarks want on their homes and commercial projects. And even though the products are shipped across the country, Baker said they can still be considered environmentally friendly.

"Our products are kiln-dried before shipping and we can ship approximately 34,000 board feet compared to being able to ship only 13,000 board feet if it weren't dried," he said. "Also, the mills we buy from either use natural regeneration methods or replant methods."

Robbins Lumber in Searsmont, Maine, is one of Heartwood's suppliers and has been doing business with the company for a dozen years.

"Heartwood really appreciates the natural attributes of real wood and the fact it is the best choice for impact on the environment," said Robbins Lumber co-owner Alden Robbins.

Heartwood's best-selling products include interior flooring, tongue-and-groove paneling and exterior log siding, Baker said, and he's optimistic - and realistic - about sales expectations in 2010.

"Ideally, if we can maintain our 2009 sales, I would be thrilled, and I think that can be achieved," he said. "I really don't see a change in the market until late this year or maybe even early 2011."